Assessing the accuracy of BLS local unemployment rates: A case study.

The accuracy of local unemployment rates published by the Bureau of Labor Statistics has been questioned because of their heavy reliance on secondary data sources. It has often been suggested that this criticism could be tested if the BLS's survey methodology for determining national rates were applied to local labor markets. This study employs that methodology more rigorously than previous studies to estimate unemployment in the Youngstown/Warren SMSA in June 1984. When the resulting estimates are compared with those obtained using the BLS's local survey methodology, it is found that the BLS estimates significantly understate unemployment. The author offers suggestions for improving BLS local-level statistical programs. (Abstract courtesy JSTOR.)